BRMA, BSMOA oppose power price hike

FE Report Leaders of Bangladesh Re-rolling Mills Association (BRMA) and Bangladesh Steel Mill Owners Association (BSMOA) have opposed the government's move to hike price of electricity apprehending rise in price of mild steel (MS) rod. The association leaders have also placed a five- point demand to stabilise MS rod market and for the sustainability of over four hundred steel and re-rolling mills of the country. The demands were placed at a press conference at Dhaka Reporters Unity (DRU) in the city Wednesday. Mizanur Rahman Babul, Senior vice-chairman and Abu Bakkar Siddiq, General Secretary of BRMA and Md Abdus Salam, Senior Vice-chairman, Md Shajahan, Secretary General and Md Bodiul Alam, Adviser of BSMOA were present, among others, at the press conference. Md Shajahan said, "Increased price of US dollar, low pressure of gas and frequent price hike of electricity have already hit the industry hard." "Production of MS rod fell down for these reasons resulting in the continuous losses incurred by the mill owners. The new move for price hike has added a new burden on them increasing the sufferings of the entrepreneurs," he added. He said, "Previously we would use seven hundred units of electricity to prepare each tonne of billet but presently we have to consume up to 2,000 to 4,000 units of electricity for the same purpose bringing woes for both producers and users". The leaders have urged the government to reduce price of electricity and exempt the demand charge. Both the association leaders have also threatened to increase price of MS rod from January 1, 2012 if the government does not consider their genuine demand.